Kóka on the exchange rate band

In an interview to news agency Bloomberg, Hungarian Economy Minister János Kóka said that sticking to the exchange rate band has negative effects on efforts to curb inflation.

Kóka later refuted interpretations saying that he meant to see the trading band of the forint abandoned. It is not on the agenda at present but there certainly is a conflict between the forint's trading limits and the central bank's inflation targeting policies, Kóka said, adding that what he would really like to see, is a discussion of the issue between monetary decision makers and market players. Central bank (MNB) president András Simor earlier said that inflation can be kept under control without scrapping the band, though he admitted that inflation targeting and the existence of trading band is theoretically in contrast. A free floating forint would soon start strengthening and import prices would be down and so would inflation, traders say. The rate band at present: is defined by mean rate +/– 15 %, i.e. between Ft 240.01 and Ft 324.71 against the Euro. (Gazdasági Rádió, Magyar Hirlap, Napi Gazdaság)

Related articles

Agricultural producer prices overall remained unchanged in June 2018 compared to June 2017, resulting from an increase of 3.5% in the average price of crop products and a decline of 5.6% in prices of livestock and animal products, the Central Statistical Office (KSH) reported on Tuesday.

Hungaryʼs government has discussed a ban on skyscrapers in Budapest to preserve the traditional profile of the capital. However, the ban would not apply to the planned office building of national oil and gas company MOL.

Low water levels on the Danube have reduced freight capacity on the stretch of the river that runs through Hungary by two-thirds. High temperatures in August and drought have severely lowered the Danube water level, now at 93 centimeters in Budapest.

In the second quarter of 2018, gross domestic product (GDP) in Hungary rose by 4.4% according to seasonally and calendar-adjusted and reconciled data, the Central Statistical Office (KSH) said in a flash report released on Tuesday.

The main reason for real estate acquisition in Hungary is investment, according to a recent study by real estate broker Duna House. Interestingly, entrepreneurs ranked only second as the most active buyers of property.

Forint liquidity of Hungaryʼs banking sector narrowed in July from a month earlier, which was mainly reflected in a decrease in the average stock of one-day deposits, the National Bank of Hungary (MNB) said in a report based on preliminary data on Monday.

One-fifth of Hungarian pensioners, or about half a million people, would be willing to take a job, shows a survey carried out by the GKI economic research institute in June 2018, cited by state news agency MTI on Monday.

In June 2018, the volume of industrial output in Hungary grew by 4.2% year-on-year, according to a second estimate of data by the Central Statistical Office (KSH), confirming the headline figure released on August 8. Based on working day-adjusted data, production rose by 3.1%.

Real estate developer and investment company Wing Zrt. announced on Friday the sale of the MOM Park shopping mall and office property building complex in Buda. The value of the transaction has not been disclosed.